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Annual Profit and Loss Statement Calculator

Want to start a restaurant? Many people do. The restaurant industry has one of the highest rates of new firm start ups. It also has one of the highest new-firm failure rates. So, be careful.

How much do you think you would make if you ran a restaurant? Below are annual revenue figures for a typical restaurant. Can you guess how much it cost to run the restaurant?

Give it a try. When you have finished filling out the form, click the "Show Real Numbers" button at the bottom to see the actual numbers. If you are unsure what a particular line item is, click the help button to see a description.

  Your Answers Correct Answers
Food Sales Total amount paid by customers for the food they purchased.Total amount paid by customers for the food they purchased. $
 
Beverage Sales Total amount paid by customers for beer, wine and liquor. If there are no liquor sales, soft drinks would be included. Sales of coffee, tea, milk and fruit juice are included in food sales.Total amount paid by customers for beer, wine and liquor. If there are no liquor sales, soft drinks would be included. Sales of coffee, tea, milk and fruit juice are included in food sales. $
 
Total Sales $ 3,023,718
 
 
Food Cost The grocery bill. What the restaurant pays to its suppliers for its food ingredients.The grocery bill. What the restaurant pays to its suppliers for its food ingredients. $
 
Beverage Cost What the restaurant pays for beer, wine and liquor.What the restaurant pays for beer, wine and liquor. $
 
Total Cost of Goods  
 
Gross Profit  
 
 
Salaries/Wages (including benefits) The payroll. This includes all wages, salaries, health insurance, vacation pay, employer’s part of Social Security (FICA) taxes, unemployment and workers’ compensation taxes. This does not include tips or the taxes deducted from the employees paycheck.The payroll. This includes all wages, salaries, health insurance, vacation pay, employer’s part of Social Security (FICA) taxes, unemployment and workers’ compensation taxes. This does not include tips or the taxes deducted from the employees paycheck. $
 
Direct Operating Expenses Expenses directly related to providing customer service. They include the cost of: uniforms, laundry, linen, china, cleaning and paper supplies, decorations, parking, licenses, permits, and contract cleaning.Expenses directly related to providing customer service. They include the cost of: uniforms, laundry, linen, china, cleaning and paper supplies, decorations, parking, licenses, permits, and contract cleaning. $
 
Marketing Includes all selling and promotional expenses, such as the costs of: newspaper, radio, television and magazine ads. Includes all selling and promotional expenses, such as the costs of: newspaper, radio, television and magazine ads. $
 
Utility Services Just like home—water, electricity, gas, heating oil. (Here’s a hint it’s higher than what most pay at home.)Just like home—water, electricity, gas, heating oil. (Here’s a hint it’s higher than what most pay at home.) $
 
Restaurant Occupancy Costs Rent, property taxes and insurance. Rent, property taxes and insurance. $
 
Repairs and Maintenance Costs of repairing and maintaining everything the restaurant owns—kitchen equipment, dining room furniture, cleaning the carpet, etc.Costs of repairing and maintaining everything the restaurant owns—kitchen equipment, dining room furniture, cleaning the carpet, etc. $
 
Depreciation Costs of general aging (wear and tear) of capital items.Costs of general aging (wear and tear) of capital items. $
 
General and Administrative Expenses Commonly called “overhead,” this category includes costs necessary for running a business but not directly related to providing service to customers. It includes the costs of: credit-card charges, office supplies, postage, phone, dues, professional fees and protective services.Commonly called “overhead,” this category includes costs necessary for running a business but not directly related to providing service to customers. It includes the costs of: credit-card charges, office supplies, postage, phone, dues, professional fees, music licensing and protective services. $
 
 
Total Operating Expenses  
 
Income Before Taxes  
 
Profit Margin  
 

How do you think this restaurant did for the year?

The restaurant business is not an easy one. The average full-service restaurant earns a profit of just four percent of sales (less than a third of the normal tips paid!). So the 4.2 percent this restaurant earned was slightly better than average.